Description
Return log1p(simpleReturn) and one-plus-return wealth factor.
A simple return is a change relative to an initial value, while a gross return is a wealth multiplier and a log return uses a logarithm of that multiplier. Dividend, split, fee and currency conventions change what is included.
Return log1p(simpleReturn) and one-plus-return wealth factor.
When to use this tool
Use Asset Log Return Simple Crosswalk when you need a stated return-basis conversion or contribution.
How to use the tool and how it works
- Enter simpleReturn. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read logReturn, wealthFactor. Use the output convention below.
Require simpleReturn greater than -1. Return log1p(simpleReturn) and one-plus-return wealth factor.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| simpleReturn | Simple Return | Required. Finite number; strictly above -1. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| logReturn | Log Return | Required. Finite number. |
| wealthFactor | Wealth Factor | Required. Finite number. |
{
"input": {
"simpleReturn": 0.1
},
"output": {
"logReturn": 0.09531017980432487,
"wealthFactor": 1.1
}
}Limitations and assumptions
- Return is a fraction, not percent. A total-loss return of -1 is excluded because its log is not finite; no annualization or forecast occurs.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Reconstruct the full investment cashflow and adjustment history for performance analysis. Align horizons, quote direction and numeric return scales, and include relevant fees and taxes explicitly.
References
Similar or alternative tools
- Return Factor Log Gap
Return their natural-log difference and first/second factor ratio.
- Return Quote Currency Factor
Multiply them and subtract one for simpleReturn.